In early January 2020, Pharoah Corporation applied for and received approval for a trade name, incurring legal costs of $46,400. Inearly January 2021, Pharoah incurred $24,000 in legal fees in a successful defence of its trade name.Calculate amortization for 2020; carrying amount at December 31, 2020; amortization for 2021; and carrying amount atDecember 31, 2021, if the company amortizes the trade name over its 16-year legal life. (Round answers to O decimal places, e.g.5,275.)Amortization amountCarrying amountAmortization amounttACarrying amount$+A$CA2020Calculate amortization for 2020; carrying amount at December 31, 2020; amortization for 2021; and carrying amount atDecember 31, 2021, if the company amortizes the trade name over a useful life of 5 years.CAta2020$LA$LA$2021LA2021

Amortization is used to reduce the value of intangible assets. Intangible assets are those which do…

Answered: Calculate amortization for 2020;…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In early January 2019, Outkast Corporation applied for a trade name, incurring legal costs of $16,000. In January 2020, Outkast incurred $7,800 of legal fees in a successful defense of its trade name. Instructions a. Compute 2019 amortization, 12/31/19 book value, 2020 amortization, and 12/31/20 book value if the company amortizes the trade name over 10 years. b. Compute the 2020 amortization and the 12/31/20 book value, assuming that at the beginning of 2020, Outkast determines that the trade name will provide no future benefits beyond December 31, 2023. c. Ignoring the response for part .b., compute the 2021 amortization and the 12/31/21 book value, assuming that at the beginning of 2021, based on new market research, Outkast determines that the fair value of the trade name is $15,000. Estimated total future cash flows from the trade name is $16,000 on January 3, 2021.
Ignoring the response for part (b), compute the 2021 amortization and the 12/31/21 book value, assuming that at the beginning of 2021, based on new market research, Bramble determines that the fair value of the trade name is $16,320. Estimated total future cash flows from the trade name is $17,520 on January 3, 2021. 2021 amortization 12/31/21 book value $ $
In early January 2019, Sheffield Corporation applied for a trade name, incurring legal costs of $15,800. In January 2020, Sheffield incurred $8,100 of legal fees in a successful defense of its trade name. (a) Your Answer Correct Answer Your answer is correct. Compute 2019 amortization, 12/31/19 book value, 2020 amortization, and 12/31/20 book value if the company amortizes the trade name over 10 years.
In early January 2020, HUMID Corporation applied for a trade name, incurring legal costs of P160,000. Based on new market research, HUMID determines that the market value of the trade name is P120,000. In January 2021, HUMID incurred P7,800 of legal fees in a successful defense of its trade name. Trade name should be amortized based on legal life. What is the cost of Tradename? P120,000 P160,000 P280,000 O P167,800
On January 11, 2022, The Hughes Company applied for a tradename. Legal costs associated with the application were P20,000. In January 2023, the company incurred P8,000 of legal fees in a successful defense of its tradename. The tradename was not impaired in 2022 and 2023. Required Compute the ending carrying value of the tradename for 2022 and 2023. Should thecompany amortize the tradename?
. On January 11, 2022, The Hughes Company applied for a tradename. Legal costs associated with the application were P20,000. In January 2023, the company incurred P8,000 of legal fees in a successful defense of its tradename. The tradename was not impaired in 2022 and 2023. RequiredCompute the ending carrying value of the tradename for 2022 and 2023. Should the company amortize the tradename? *Note: Show the solution step by step with formula
On January 11, 2022, The Hughes Company applied for a tradename. Legal costs associated with the application were P20,000. In January 2023, the company incurred P8,000 of legal fees in a successful defense of its tradename. The tradename was not impaired in 2022 and 2023. RequiredCompute the ending carrying value of the tradename for 2022 and 2023. Should the company amortize the tradename? Show the solution step by step.
Yellow Company acquired a trademark for P10,000,000 from Orange Company on January 5, 2021. The trademark is carried in the accounting records of Orange at an amortized cost of P7.6 million. Yellow Company's consultant has estimated that the useful life of the trademark to be indefinite. What amount should Yellow report as accumulated amortization at Dec. 31, 2021?
In early January 2024, Ayayai Corporation applied for a trade name, incurring legal costs of $15,800. In January 2025, Ayayai incurred $7,200 of legal fees in a successful defense of its trade name. (a) Compute 2024 amortization, 12/31/24 book value, 2025 amortization, and 12/31/25 book value if the company amortizes the trade name over 10 years. (Round answers to O decimal places, e.g. 5,125.) 2024 amortization 12/31/24 book value 2025 amortization 12/31/25 book value $ LA LA $ of SUPPORT
In early January 2024, Monty Corporation applied for a trade name, incurring legal costs of $16,800. In January 2025, Monty incurred $7,200 of legal fees in a successful defense of its trade name. (a) Your answer is correct. Compute 2024 amortization, 12/31/24 book value, 2025 amortization, and 12/31/25 book value if the company amortizes the trade name over 10 years. (Round answers to O decimal places, e.g. 5,125.) 2024 amortization (b) 12/31/24 book value 2025 amortization Question Part Score $ $ 12/31/25 book value $ $ eTextbook and Media 2025 amortization Your answer is correct. $ 1680 12/31/25 book value $ 15120 2480 Compute the 2025 amortization and the 12/31/25 book value, assuming that at the beginning of 2025, Monty determines that the trade name will provide no future benefits beyond December 31, 2028. 19840 5580 Attempts: 1 of 4 used 16740 2/2
In early January 2024, Bramble Corporation applied for a trade name, incurring legal costs of $16,200. In January 2025, Bramble incurred $7,200 of legal fees in a successful defense of its trade name. (a) Compute 2024 amortization, 12/31/24 book value, 2025 amortization, and 12/31/25 book value if the company amortizes the trade name over 10 years. (Round answers to O decimal places, e.g. 5,125.) 2024 amortization $ 12/31/24 book value $ 2025 amortization $ 12/31/25 book value $
Tyeso Company entered into a lawsuit on December 25, 2020 and recognized on the same date a provision of P2,000,000. On February 28, 2021, when the financial statements for the year ended December 31, 2020 had not yet been authorized for issue, the case was settled and the court decided the final total damages to paid by the entity at P3,000,000. In addition, the Company has a loan payable of P2,000,000 due on June 30, 2021. On January 1, 2021, before the authorization of the issuance of financial statements, the bank agreed to refinance the loan, extending the maturity to June 30, 2023. Also, another loan amounting to P7,000,000 due on December 1, 2021 was obtained by the Company from BDO. TYESO Company has the discretion to refinance or roll over the loan for at least twelve months from December 31, 2021. 1. Compute for the current liability to be presented in the financial position a. P12 million b. P10 million c. P5 million d. P4 million Answer: 2. Compute for…

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Calculate amortization for 2020; carrying amount at December 31, 2020; amortization for 2021; and carrying amount at December 31, 2021, if the company amortizes the trade name over its 16-year legal life. (Round answers to O decimal places, e.g. 5,275.)